Cato calls Jindal's hand on film tax welfare-- - Page 10 - TigerDroppings.com

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I B Freeman
Member since Oct 2009
5274 posts

re: Cato calls Jindal's hand on film tax welfare--


At least Golfer understands, I think, the programs.

What is disturbing is he helps write the laws and sees no moral problem with picking winners and loses.

He will admit it is welfare but will try to justify it.

Russian will never admit it is a cost to the state and is welfare.






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Golfer
LSU Fan
Coral Bay, St. John, USVI
Member since Nov 2005
56000 posts

re: Cato calls Jindal's hand on film tax welfare--


quote:

What is disturbing is he helps write the laws and sees no moral problem with picking winners and loses.


I don't have a problem with it because if you are creating jobs in Louisiana in an economic driver industry you will benefit from state incentives.






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80158 posts

re: Cato calls Jindal's hand on film tax welfare--


quote:

Russian will never admit it is a cost to the state

You're wrong. It is a cost, with the expectation that the cost is recovered through the generation of high paying jobs which the state desperately needs.

Those high paying jobs, along with the spin off jobs created by suppliers, caterers, craftsmen, etc., all have employees paying state income taxes along with the entire menu of other state and local taxes.

That is where the initial "cost" is expected to be recovered.



This post was edited on 10/9 at 10:35 pm


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VOR
New Orleans Pelicans Fan
New Orleans
Member since Apr 2009
40595 posts

re: Cato calls Jindal's hand on film tax welfare--


quote:

What is disturbing is he helps write the laws and sees no moral problem with picking winners and loses.



Why don't you face it. It's entirely possible that the majority of legislators and ordinary citizens who take the time to "understand" the credits just don't agree with you. You're in the minority. GET THE frick OVER YOURSELF. YOU'RE GOING TO DEVELOP AN ULCER.






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I B Freeman
Member since Oct 2009
5274 posts

re: Cato calls Jindal's hand on film tax welfare--


quote:

I don't have a problem with it because if you are creating jobs in Louisiana in an economic driver industry you will benefit from state incentives.
(don't get me started on favoring the state over the individual's rights as your statement implies--you favor taking the fruits of my work for the benefit of the state? another topic)

You do understand that these incentives that are not self generating do harm to the people that pay the taxes? That none of the proponents every consider this harm when they make these wild claims of benefits in the economy? Having been on an industrial development board I never once saw an out and out cash subsidy based on going expenses until these film tax credits and DM credits came along.

But tell me if you disagree with these statements please:

quote:

Golfer will you agree to these statements:

that refundable and or transferrable tax credits to businesses are essentially welfare payments to businesses.

that refundable and or transferrable tax credits are direct cost to taxpayers as the business did not generate the taxes to cover them.

that refundable and or transferrable tax credits differ from almost all the other state incentives in that they require money from other taxpayers to support. That other incentives are revenue neutral for the state treasury because they are basically relief of taxes that business generates.

Surely we can agree on those.



This post was edited on 10/9 at 10:40 pm


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I B Freeman
Member since Oct 2009
5274 posts

re: Cato calls Jindal's hand on film tax welfare--


Skule is right in everything he posted.

I believe Golfer agrees with the three statements I wrote.

I believe Russian argued forever before he finally realized taxpayers are paying the film tax credits and he only hopes they pay off one day for the state because he does not know if 35% is the "right" number or not.

Anyways good night. (if you support those film tax credits don't call yourself a small government conservative)






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LSURussian
LSU Fan
Baton Rouge
Member since Feb 2005
80158 posts

re: Cato calls Jindal's hand on film tax welfare--


quote:

I believe Russian argued forever before he finally realized taxpayers are paying the film tax credits

I've never asked this before on this board because I know it is insensitive to certain posters on here, but seriously, Freeman, ARE YOU RETARDED?? When have I NOT said the state was paying the tax credits?
quote:

because he does not know if 35% is the "right" number or not.


That's true. It might be too high or it might be too low. I know other states offer similar incentives and I'm sure the legislation was intended to allow Louisiana to be competitive against those states. But what percent of tax credits is 'ideal'? I don't know. Do you?

Please answer my serious question: Have you been diagnosed with being mentally retarded? That is the only explanation for your posts.






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I B Freeman
Member since Oct 2009
5274 posts

re: Cato calls Jindal's hand on film tax welfare--


For Golfer and Russian to ponder. Seems the WSJ thinks this welfare stupid too.

quote:

Welfare for Hollywood
The studios that want higher taxes also want a special tax credit.

The Hollywood fashion "hobo chic" probably seems bizarre to most people. But perhaps celebrities are merely emulating the well-heeled production companies that have just hit up California taxpayers for another $200 million. Is this what Hollywood liberals call social justice?

Governor Jerry Brown this week signed a two-year extension of a film and television tax credit that his Republican predecessor Arnold Schwarzenegger supported in 2009. The credit is essentially a dolled-up subsidy. For every dollar that production companies spend on a project in the state, they get credited 20 to 25 cents against their state sales and income taxes. Nice deal if you can get it.

Conan the Barbarian had Hollywood friends, but what's Mr. Brown's excuse for subsidizing one of California's oldest and most prosperous industries?

"Runaway production."

Hollywood's mendicants claim the state is losing production jobs to lower cost, more charitable states. In 2002 Louisiana's Republican Governor Mike Foster started the expensive trend of using tax credits to lure production. Bobby Jindal has expanded the credit, and other GOP Governors such as Texas's Rick Perry and Virginia's Bob McDonnell have followed. By 2010, 44 states were offering such incentives.

While Mr. Brown may reckon that he's merely keeping up with the Jindals, in the last two years about a dozen states have discontinued or dialed back their subsidies including New Jersey, Kansas and Arizona. Lawmakers in those states have realized that there's only so much cash to go around, and every dollar paid to Hollywood is one fewer sent to schools. Most independent studies—those not paid for by the Motion Picture Association—also show that the subsidies provide little bang for taxpayer bucks.

The liberal Center on Budget and Policy Priorities in 2010 found that every dollar Massachusetts spends on film tax credits raises a mere 16 cents in revenue. That's a net taxpayer loss of 84 cents. California's Legislative Analyst's Office has concluded that the economic benefits of the credits are "dramatically overstated" and that the subsidies "arbitrarily favor some producers over others, and will mostly fund productions that would have been filmed in California in any case."

The California Research Bureau likewise reported last year that there is no "clear evidence that any significant damage to the state's industry or economy has resulted from efforts by other states to draw movie production away from California in the past decade." Employment in Los Angeles's film industry increased by 50% between 2000 and 2009 while growth remained flat in the rest of the country. California has plenty of runaway problems—a bullet train, spending, jobs—but movie production isn't one of them.

Speaking of jobs: Democrats and Hollywood liberals who insisted the tax credits were needed to make California more competitive are now campaigning for a tax hike. Warner Bros., Walt Disney, Sony, Comcast and Viacom have contributed money to the Governor's tax measure, which would raise the sales tax by a quarter of a cent and the top marginal income-tax rate to 13.3% from 10.3%.

While the tax hike won't directly hit the production studios, it'll wallop investors and small business, which are really at risk of running away. A recent Manhattan Institute study found that 3.4 million Californians in the last two decades have sought asylum in other, mostly lower-tax, states. We like movies as much as the next guy, but their producers shouldn't prosper at taxpayer expense.


LINK



This post was edited on 10/22 at 7:52 pm


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VOR
New Orleans Pelicans Fan
New Orleans
Member since Apr 2009
40595 posts

re: Cato calls Jindal's hand on film tax welfare--


quote:

I B Freeman



You are beyond obsessed with this issue, as well as any other tax breaks the state may give.

I guarantee you that the studies you cite do not adequately take into account new businesses and resulting tax revenue created by post production, security services, sound labs, etc. You need to take a pill.






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I B Freeman
Member since Oct 2009
5274 posts

re: Cato calls Jindal's hand on film tax welfare--


quote:

You are beyond obsessed with this issue, as well as any other tax breaks the state may give.

I guarantee you that the studies you cite do not adequately take into account new businesses and resulting tax revenue created by post production, security services, sound labs, etc. You need to take a pill.


It is raping of tax payers just as the WSJ explains that no small government conservative should support.






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I B Freeman
Member since Oct 2009
5274 posts

re: Cato calls Jindal's hand on film tax welfare--


Seems more and more people are seeing the light on this special interest boondoggle

quote:

That credit alone resulted in $85.2 million in losses in the state’s individual income tax revenue during the 2012 fiscal year. When you combine all the film tax credits offered by Louisiana, the amount in lost revenue for the 2012 fiscal year comes to a whopping $231 million. In the last 10 years, the amount in lost revenue caused by the state's film industry tax credits equals more than $1 billion.

What’s more, Spires notes, is that the overwhelming majority of individuals to claim the credit – more than 90 percent – reported annual incomes of more than $250,000.

“Most people who claim the film credit buy them through brokers in $10,000 bundles from movie producers in order to offset the taxes they owe,” writes Spires.

LBP director Jan Moller says the incentives Louisiana offers to the film industry are disproportionately increasing while budget cuts to education and health care keep coming.

“It’s a question of priorities and we think it’s probably time to start reigning in the cost of these subsidies,” Moller says. “The question is not whether we want the film industry here, the real question is what are we willing to pay to bring them here?”


LINK






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